Stock market had experienced investors certainly have heard of the stock index, the market index, or the index of these words, but there are a lot of people do not know what the specific role of these indices yes. Because there are thousands of stocks in the stock market, a certain kind of price changes for a particular stock, the investor is easy to understand. But for a variety of stock price changes, to understand one by one, neither be easy nor troublesome. To accommodate this and need some financial services institutions to use their business knowledge and advantages familiar with the market, the preparation of the stock price index, the index is used to describe the overall price level changes in the stock market.
More well-known global indices proper way Jones index, Hong Kong's Hang Seng Index, Nikkei Index, and the New York Stock Exchange price index. Domestic, mainly in the Shanghai stock index and Shenzhen Composite stock index, stock index without exception, these are shows that changes in the average price of the share price. The preparation of the stock index, usually a certain period as the basis, the stock price of the base period as a percentage of 100 compared with the stock price and the price of the base period for subsequent periods, calculated movements, that is, the period of the stock index.
In order to reflect the real-time movements of the stock market to investors, almost all of the stock market will be immediately released while stock prices in the stock price change. Investors can lift the index to determine a trend of stock price changes. When the stock price index rose, indicating that the average price of the stock up; when the stock price fell, indicating that the decline in the average price level of the stock.
We know that the stock index is a measure of a part of the stock market, let us explain what stock index CFDs. The stock index CFDs, CFDs CFDs that is, so that you do not need to have a physical product, but also to trade in products for the price difference. To facilitate understanding, we can CFDs analogy for the domestic index funds, but the domestic index funds that buy shares, CFDs are directly buying the stock, index funds is indirect, CFDs more direct. But the concept of the fund is more complicated, index funds "index", it is to undergo a screening, not a copy than a common index. Overall, the index CFDs is a way for investors so that they can trade index, but do not have the relevant share or index itself, thereby to monetize their desired direction of movement.
That's all. "Talking about the difference ATFX stock index, and stock index CFDs," the. do you understand?
